Docstoc

Real Estate Broker Licensing Agreement

Document Sample
Real Estate Broker Licensing Agreement Powered By Docstoc
					Anne M. Woody                                                                                             Shepherd Mall
Executive Director                                                                              2401 N.W. 23rd, Suite 18
                                                                                             Oklahoma City, OK 73107
“Dedicated To Providing Quality                                                                Toll Free (866) 521-3389
Customer Service”                                                                            Telephone (405) 521-3387
                                                                                          Website: www.orec.state.ok.us



                             OKLAHOMA REAL ESTATE COMMISSION
                 BROKER LICENSING OPTIONS for ACTIVE STATUS

        A Broker Associate
        …is a licensed broker who operates in the name of a sponsoring broker only, and not in the
        name of the associate himself.

        A Sole Proprietor
        …is a licensed broker who is the sole owner of the real estate business and who can sponsor
        associates and is the person answerable to the Commission for all activities of them self and
        associated associates. Individual assets(furniture, personal property, etc.) may be sold or
        transferred, including the name of the company and goodwill. However, the business life
        terminates upon the sale or dissolution of the business or the death or bankruptcy of the owner.
        All current listings will cease to exist upon the sale or dissolution of the company. If the
        company is sold, the new owner must negotiate new agreements. All pending contracts and
        trust account monies can either be: 1) held by the original sole proprietor until proper disbursal;
        2) or until proper addendum’s to contracts are prepared and signed by all parties agreeing to the
        transfer of contracts and/or monies. On the sale of a sole proprietorship, caution is suggested
        and you should seek legal advice.

        A Managing Broker of a Corporation
        …is a licensed broker who can sponsor associates and is the person answerable to the
        Commission for all activities of the corporation.

        A Managing Broker of an Association (Limited Liability Company)
        …is a licensed broker who can sponsor associates and is the person answerable to the
        Commission for all activities of the association. To qualify for this type of license the broker must
        be either a member or a manager of the limited liability company.

        A Managing Broker Partner of a Partnership
        …is a licensed broker who can sponsor associates and is one of the persons answerable to the
        Commission for all activities of the partnership. To qualify for this type of license the broker must
        be one of the partners of the partnership.

        A Branch Office Broker of a Branch Office
        …is a licensed broker who can sponsor associates and is responsible in conjunction with the
        main office broker for all activities of the branch office.

        A Branch Office
        …is an extension of the main office located in a different locale. Each additional office must be
        licensed as a branch office and have a specified licensed broker. The broker designated to
        supervise a branch office must be licensed at that office. The branch office broker assumes
        responsibility for all associates assigned to that office in conjunction with the broker of the main
        office.


                                       OREC R1702 BROKER LICENSING OPTIONS for ACTIVE STATUS (REV 03/06)
A Corporation
…in the State of Oklahoma must be licensed as a real estate broker prior to
conducting business in real estate and/or before receiving a fee, commission or other valuable
consideration on real estate
transactions, with the exception of Oklahoma Real Estate Commission Rules: Associate’s
corporation or association 605:10:11-3.
A corporation can be chosen if a licensed or unlicensed individual is going to have an interest in
the real estate business. The managing member or managing officer must hold an individual
license as a real estate broker. Shareholders elect the directors (who set policies) and who in
turn elect officers to direct the daily activities. The shareholders may draft bylaws to permit the
type of management desired. Corporate shares generally are freely transferable (unless
restricted by provisions in the bylaws, articles of incorporation, or by agreement of the
shareholders), making it easier for associates to join a corporation than a partnership.
Shareholders are not liable for corporate debts. However, officers and directors may be held
liable by the IRS in certain instances such as failure to collect or remit employees’ share of
withholding and social security taxes. A corporation does not cease to exist upon the death or
bankruptcy of an officer, director or shareholder. Corporations are required to be registered at
the Oklahoma Secretary of State (405) 521-3911.

A Partnership
…in the State of Oklahoma must be licensed as a real estate broker prior to conducting
business in real estate and/or before receiving a fee, commission or other valuable
consideration on real estate transactions. A Partnership has to consist of at least two or more
partners who are actively licensed brokers. Two or more brokers operating jointly may find they
have an “apparent” partnership without formal agreement (written or oral) with the entire
liabilities incident thereto. From an income tax standpoint, the general partnership is superior to
the corporation as it does not pay taxes. Each partner reports his share of the profit or loss on
his individual income return. Each partner is individually liable for partnership debts and may
have to pay all debts regardless of any written agreement to the contrary. There is a mutual
agency relationship between the partners, and joint agreement is required for most partnership
actions. Generally, the partners must agree before an individual partnership interest (a portion
of the “entity”) can be sold. A partner may assign his interest in the profits and assets of the
partnership, but cannot assign his rights to management participation without permission of the
other partner(s). Each partner may exercise his choice and preference (or refusal) as to
admission of any new members to the firm. A general partnership terminates upon: the end of
the term fixed by the partnership agreement; by agreement of all partners; the withdrawal or
expulsion of a partner either by court order or bankruptcy; death of a partner; or at the will of any
partner.


An Association (Limited Liability Company)
…in the State of Oklahoma must be licensed as a real estate broker prior to conducting
business in real estate and/or before receiving a fee, commission or other valuable
consideration on real estate
transactions, with the exception of Oklahoma Real Estate Commission Rules: Associate’s
corporation or association 605:10-11-3.An association can be chosen if a licensed or
unlicensed individual is going to have an interest in the real estate business. The managing
member must hold an individual license as a real estate
broker. By Oklahoma statute, the limited liability company act defines a limited liability company
as an unincorporated association having one or more members that is organized and existing
under the laws of this State. The limited liability company is the only entity that is licensed by the
Commission as an association.
Associations are required to be registered at the Oklahoma Secretary of State (405) 521-3911.


If you wish to operate your own business, you will need to select a name.

If you need legal advice regarding what name to choose, what type(s) of broker license(s) you
should select, what the requirements are for forming corporations, associations (limited liability
co.) or partnerships, you should contact someone who provides legal advice.

If you have any questions regarding licensing, please contact our Records Department.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:12
posted:7/30/2011
language:English
pages:3
Description: Real Estate Broker Licensing Agreement document sample